North Carolina Fines LPL FINANCIAL $295,000 Over Broker's Ponzi Scheme

LPL FINANCIAL LLC has been ordered by the state of North Carolina to pay $25,000 in fines, and to reimburse the state of North Carolina $270,000 for the cost it took to investigate a $1.4 million Ponzi scheme orchestrated by one of their registered representatives:  CHARLES CALEB FACKRELL CRD#: 5369665 from Booneville, North Carolina.
Fackrell ran this Ponzi scheme from May 2012 to December 2014, misappropriating funds from at least 20 clients when he was a broker with LPL. Fackrell, who is 37 years old, pleaded guilty to one count of securities fraud in April of 2016 and was sentenced in December of 2016 to 63 months in jail, serve three years of court supervision after he is released from prison, and to pay approximately $820,000 in restitution to his former clients.
The US Attorney’s office is quoted as saying Fackrell, "used his position of trust to solicit victim investors and steer them away from legitimate investments to purported investments with" various "Robin Hood" named entities that Mr. Fackrell controlled and through which he could access victim's funds’.”
Fackrell ran the Ponzi scheme using approximately $1.4 million in funds he solicited from at least 20 victims.  According to court records, Fackrell was a broker who solicited his victims away from legitimate investments to investments with, Robin Hood, LLC, Robinhood LLC, Robin Hood Holdings LLC, and Robinhood Holdings LLC., and related entities, all controlled by Fackrell through which he could access the victims’ funds.
Fackrell claimed the investors’ money would be invested in, or secured by, gold and other precious metals, when in fact Fackrell spent only a fraction of investor money on those investments.  According to court records, Fackrell guaranteed annual returns of 5% to 7%.  Fackrell used the majority of the investors’ money for personal expenses.  Fackrell also used some of the victims’ money to make interest payments to investors who demanded their money back.  According to court records, in an attempt to conceal his fraud, Fackrell asked a third party to destroy a computer and documents related to the Ponzi scheme.
Several of Fackrell’s victims have filed complaints against his former employer, LPL Financial LLC, accusing it of failing to exercise proper supervision over more than $1 million in financial transactions made by Fackrell.
See two additional blog entries from Soreide Law Group:
April 20, 2015:  https://www.securitieslawyer.com/charles-caleb-fackrell/
December 15, 2016:  https://www.securitieslawyer.com/fackrell-ponzi-scheme/
FINRA barred Fackrell from acting as a broker or otherwise associating with firms that sell securities to the public.  Charles Caleb Fackrell, according to FINRA's BrokerCheck, was registered at the following firms:
06/2010 - 12/2014 LPL FINANCIAL LLC (CRD# 6413) - YADKINVILLE, NC
12/2009 - 06/2010 WELLS FARGO ADVISORS, LLC (CRD# 19616) - HIGH POINT, NC
If you were a victim of former LPL FINANCIAL LLC of Yadkinville, North Carolina broker, CHARLES CALEB FACKRELL’s Robin Hood Ponzi Scheme and you lost your investment due to LPL’s alleged lack of supervision, call Soreide Law Group for a no-cost consultation with an attorney regarding the possibility of recovering those losses at:  888-760-6552. 
Soreide Law Group represents our clients nationwide before FINRA and we operate on a contingency fee.  Let our years of experience work for you.